Short Sale Realtors: Bloomfield / Birmingham / Novi / Troy / Rochester / Beverly Hills / West Bloomfield / Franklin / Royal Oak / Huntington Woods / Oakland County / Detroit Metro Area The Mike Realtor Team!

Often Realtors, Clients or Friends ask me what is the key to Short Sale success.  As you can guess from the Churchill quote above, "ACTION" is the key to success.  This quote also covers why Short Sales fail "INACTION".   Below I have listed examples of Action and Inaction: so you know the difference.

Action:

1. Faxing 3^rd party authorizations the day you get the listing & ordering pre-title.
2. Getting the hardship package scanned and prep with in the first weeks of the listing.
3.  Lowering the list price every 10-15 days until you get an offer
4.  Calling the back every time you fax them document then two to four times a week once you have an offer in.
5. Taking great notes!
6. Having your HUD done with 48 hours of getting an offer
7. Faxing in your offer with in 72 hours of getting an offer.
8.  Meeting the BPO/Appraiser at the home.
9. When calling the banks, always asking where we are in the process and what can be done to speed things up.
10. Keeping the Seller and Buyer Agent up to speed.
11. Always pressing on after every success and/or failure until you close.

Inaction:

1.  Never getting anything in advance.
2. Faxing in 3^rd party authorizations months after taking on the listing.
3. Not scanning documents at all.
4. Never calling the bank regularly and not taking notes.
5. Not meeting the BPO/Appraiser at the home.
6. Not keeping all parties informed of the progress.
7.  Not lowering the price regularly.
8. Not getting a HUD or Title work timely.
9. Not asking questions when calling the bank.
10. Giving up at the first bump in the road.

Mike Sher, CDPE: http://hosted.cdpe.com/MikeRealtor/

Office: (248) 644-4700x242 Fax :(248) 499-1020 4120 Telegraph Rd, Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer Max Brook and Real Estate One Short Sale Specialist.

The Mike Realtor Team Blog - Metro Detroit/Oakland County Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City But, We Can Help!

This is a competitive real estate market. If you have to sell and can not, perhaps it is time to look at a Short Sale. The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

The link below comes from a CNN report on how banks are foreclosing on borrowers but never taking title so the borrowers are foreclosed on but still have all of the obligations as owners of the home.  All city fines, taxes, assessment and any violations from the municipality are still the responsibility of the now foreclosed borrower.  Also don't forget the balance of the note plus late fees and interest are still the obligation of the borrower. 

Why would the bank do this?  The value of the asset (borrower's home) has declined to a point that it would cost the bank more money to maintain, repair, pay off past fines, dues, legal costs, closing costs, past taxes and commissions to sell the home compared to just walking away.   

This is just another reason why a Short Sale, Loan Modification or Deed In Lieu are worth the extra work to avoid a foreclosure.    If you are going to walk away, I would recommend running and never stopping!!!

 http://money.cnn.com/video/news/2009/08/13/news.bank.walkaways.cnnmoney/

Mike Sher, CDPE: http://hosted.cdpe.com/MikeRealtor/

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer Max Brook and Real Estate One Short Sale Specialist.

The Mike Realtor Team Blog - Metro Detroit/Oakland County Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City But, We Can Help! This is a competitive real estate market. If you have to sell and can not, perhaps it is time to look at a Short Sale. The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

As some of you Short Sale Realtors have found, many banks are not as open minded to releasing deficiencies (difference between what is owed and what the lender collects) as they were in the past.  (Countrywide who is now BOA) Bank Of America recently established a zero tolerance towards negotiating their Short Sale approval letters.  The new language is a follows: "BAC Home Loans Servicing, LP and/or its investor may pursue a deficiency judgment for the difference in the payment received and the total balance due,..."

This language is a little unsettling for sellers who were told that they would owe nothing after closing.  Well, for all of you Short Sale seller's out their, you might end up owing money after closing.  I know this is not what you want to hear but better now then at the end of the long process of a Short Sale. 

A seller who is already demoralized from the start, who has waited months,  sending bank statements, tax returns and keeping their home in show ready condition while writing groveling letters to the bank begging for help, are not in the best moods.   That is why they just walk away when they find out that they are stuck with the deficiency.  They were unprepared for that outcome and Rage replaces Sound Judgment.

The fact is that in many states, like Michigan, if the bank forecloses, the seller will still owe as much or more because of legal fees, penalties and interest then they would with the short sale + deficiency.  I know this is a bitter pill but those are the facts.  We are trying to make the Best out of the Worst.

Short Sale Seller's out there, before you rip up that short sale agreement that you have worked so hard to get, call a local Real Estate Attorney and make sure that your rejection is based what's best for you not on what you think will hurt the bank the most.  The bank does not want to foreclose but is not afraid to do so.

"Whether the Glass hits the Rock or the Rock hits the glass, things end poorly for the Glass", Man of La Mancha

 Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

One of the problems we have as short sale Realtors is with Nay-Sayers.   Often the press, other agents and co-worker at the coffee cooler constantly put-down short sales.  They tell people that the bank will never take a short sale, they take to long to close, or that they just don't work.  These Nay-Sayers create an atmosphere that causes people to walk away from their homes, hopeless and filled with fear.

Well they are wrong, short sales do work and sellers are able to take the high road if they choose.  Below is an article that was written by Greta Guest of the Detroit Free Press.  It is the story of young buyers who purchased a home that they never thought they could afford, a seller who had faith that if did the right thing all would work out and about an agent (me) who never gave up.

What is the SHORT SALE tip? If you have a positive story about a short sale, and you never tell anyone, it never happened.  So the next short sale you close let the world know and even the nay-sayer's might listen.

Please click the link below.

The high road: Determined seller exits an upside-down mortgage

 Mike Sher,

Office: (248) 644-4700x242   Fax :(248) 499-1020
Bloomfield Hills, MI 48302
E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

1. You're upside down with a loan greater then what the home can sell for. What you owe is irrelevant to how much a buyer is willing to pay for a it.  
2. Other homes are priced far less because they are bank owned or Short Sales.  These homes are selling and their is an ample supply of them, you can not wait until they are all sold..
3. The local economy has generated buyers who are only looking for "Deals". If your home is not priced right it will sit because buyers will find another seller who will wheel and deal!
4. Your price is based on the list price of other active homes that have not sold.    Only sold and pending home sales data demonstrates true market value, homes that have not sold are often overpriced.
5. You have dismissed the most recent sales because they were foreclosures or were "not as nice as yours". Don't get too emotionally or hypersensitive, if your home is not selling, then buyers feel that you price does not equate to value of your asking price.
6. We've had so few showings, how do I know that I'm overpriced with out getting buyer feedback?  Buyers are not even looking at your home because they found comparable homes at a lower price. If they can find what they want for less, they will never see your home.
7. Your agent has not told you to lower your price because of fear of upsetting you. Agents do not like giving bad news.  If they are a friend or family member they maybe fearful of the wraith that comes with disappointing you.
8. You are blaming the listing agent for not marketing the home well enough. If the agent has sold other homes recently with the same marketing strategy then most likely your home is over priced.
9. You have an appraisal from 2006 showing your home value is far greater then what your realtor is telling you.  The problem is since that appraisal; real estate values have dropped over 30%, 401K's and IRA's are worth 60% of what they were, lender laws are far more strict and the unemployment rate has sky rocketed.
10. Everyone says my home is so nice, it must be worth more.  Realtors work on the basis of what a home can sell for.  If buyers are only willing to pay X for something, then that is what the home is worth in today's market

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.

Need more information, call me !

 Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

Realtors hate saying no; we are in the yes business.  In the past, saying yes was not a big problem.  If an agent wanted to "buy the listing" (tell the seller what they wanted to hear to secure the listing), the greatest harm done to the client, was the disappointment of selling for less then promised.  Not the best practice by Realtors but it was done to get their sign in the yard of attractive homes.  An agent would get buyers, a neighborhood presence and maybe even sell the home after a few price reductions.

Now in a Short Sale, tons of harm is done to the seller.  If the seller can't make payments, then they will be foreclosed on.  A Short Sale is a time bomb ticking backwards, the longer it takes, the more likely it will explode into a foreclosure.   Some agents are still "buying the listing", they put the home on the market, to get some buyer leads and hopes that the Short Sale will solve itself. If an inexperienced Realtor lists a home for Short Sale, and is unable to perform the tasks required to get a Short Approval, then the home will often be lost to foreclosure. 

Locally I have seen dozens of homes with other Realtors that became foreclosures because the listing agent was unable to complete the Short Sale.  With the limited time period afforded, a seller may only have one chance to sell.  They need a qualified Short Sale Realtor to help them.  Sadly some listings have been Conditionally Withdrawn while the seller is in redemption period or right before Sheriff Sale.  The listing agent has locked up the listing to avoid other (Short Sale) agents from contacting the seller to offer help.  In fact the sellers are unable to engage with another Realtor until the listing contract has expired or a release is given.  This is wrong and is goes against are fiduciary responsibility to our clients!!

When you choose your Realtor, ask them how many short sales have they closed? Did they negotiation with the bank or was it passed on to a 3^rd party? Ask them for references and documentation that shows they are experienced in Short Sales. If a Realtor has never done a short sale or just backed into a few by chance, then you should be concerned.  You have a limited time, so make sure the agent has a track record of success.   You may not have a second chance.

Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing  Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

Recently I heard another agent yelling on the phone with a loss mitigation rep for a short sale. She was screaming “you better take this offer or your bank will go under and you’ll be out of a job”. Well in a few weeks, the home was foreclosed on and the agent was out of a sale.

It is not their fault that the mortgage terms were unfair, or that borrower can not pay the loan anymore, they are just hired to make the best of the bad hand that was dealt. They do like being yelled at, criticized, or bad mouthed for things out of their control. They, like us represent a client, “the investor” and they have plenty of job security, so if your short sale is rejected because you treated them like a bat boy in a farm league, they’ll still have a job. But, you might not!!

Let’s get back to basics, a broker once told me “treat everyone as if they had $5,000 to give to anyone who treated them nicely.” We give our clients our best face, so lets share that with the banks. I try to find out where my loss mitt rep is from and make some small talk. Find a common bond and smile. Yes, I smile, and though the poor, underpaid, mistreated, often verbally abused bank employee on the other end might not see it, but they feel it.

So, I would bet you that if you were just nice to them, you would be closing more, quicker and you might just start having fun again.

Need more information, call me !

 Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

One of the best purchases I have made in 2009 was a PDF editor. I use Nuance® PDF Converter Professional 5. It has been “the cats meow!!” I am able to take PDFs from the bank, add my client’s information, put in signature tags or highlight relevant passages and forward them by email to my clients. Plus I able to add my electronic signature to save from printing out the document, signing and rescanning it.

The best has been with my Hardship Packages. This has been a real time saver. I am able to attach the PA, all the documents for the short sale. Plus comps and statistics into one PDF. I can also add a header to each page with my contact info, the borrowers name, loan number and page number. If you have Efax or an equivalent product the world becomes even brighter. With my faxes coming in and going out from my PC, I can save paper and able to edit faxes (i.e. take out the unnecessary documents from a fax and just send out what is pertinent). I can do all of this with out printing a page.

All of these tools cut at least one to two weeks off my short sale approvals and hours off of the time for me to rescan documents.

Check it out, you’ll thank me.

Need more information, call me !

 Mike Sher,

Office: (248) 644-4700x242 Fax :(248) 499-1020 Bloomfield Hills, MI 48302 E-mail: mike@mikerealtor.com

CDPE (Certified Distress Property Expert)

MCAR, Short Sale Trainer

Max Brook and Real Estate One Short Sale Specialist.

 The Mike Realtor Team Blog - Metro Detroit/Oakland County

Servicing in Southeast Oakland County, Auburn Hills, Birmingham, Bloomfield, Berkley, Beverly Hills, Canton, Clawson, Farmington Hills, Ferndale, Huntington Woods, Northville, Novi, Pleasant Ridge, Plymouth, Royal Oak, Rochester Hills, West Bloomfield, Troy, etc. We worked with: Bank of America, Country Wide, HSBC, EverHome, Litton, GMAC, Chase, Wells Fargo, Flagstar, Fifth Third, Charter One, Comerica, Am Trust, US Bank, National City

But, We Can Help!

This is a competitive real estate market.  If you have to sell and can not, perhaps it is time to look at a Short Sale.  The Mike Realtor Team has performed dozens of Short Sales for professionals who have lost their job, income has declined, medical problems, relocation, retirement, divorce, loss of spouse, unable to make ends meet, or other reasons not listed.